Local Content Secretariat Considers Amending Act to Mandate Unbundling of Oil and Gas Contracts

Kaieteur News reported on November 5, 2026, that the Local Content Secretariat, which operates under the Ministry of Natural Resources, is evaluating changes to the 2021 Local Content Act. These potential changes would mandate that oil and gas companies unbundle contracts to better enable Guyanese companies to secure business opportunities.

During the Guyana Supplier Forum held at the Marriott Hotel in Kingston, Georgetown, Michael Munroe, the Director of the Local Content Secretariat, encouraged oil and gas companies to structure procurement opportunities in a way that allows Guyanese firms to fully benefit. Munroe noted that oil and gas companies frequently bundle various procurement needs, such as sanitation, security, and pest control, into a single Request For Proposal (RFP), which can prevent local businesses from participating if they do not offer every required service.

Policymakers have expressed concern over this practice, leading to discussions about establishing legal frameworks to strengthen local content involvement. Munroe stated that when considering how to invest in local companies through procurement opportunities, companies must be mindful of how they package RFIs and RFQs to ensure Guyanese companies have a meaningful chance to participate and grow within the supply chain.

He advised oil and gas companies to carefully consider how they package procurement opportunities, as incorrect packaging could create an artificial barrier to local content. Furthermore, Munroe suggested that oil companies should invest in their established suppliers by exploring mechanisms like addressing invoicing and financing, such as paying suppliers before the standard 30-45 day period to provide local firms with working capital.

In a separate interview at the event, Munroe mentioned that the Secretariat has received supplier feedback regarding RFP packaging, an issue he feels companies are still addressing. He stated that while progress has been made, there is still work to do, and the Secretariat continues to advocate for further unpacking of bundles to ensure continued benefits for Guyanese companies.

When questioned about including this requirement in the Local Content Act, Munroe confirmed that it is an active consideration. He noted that while the requirement is currently featured in bid evaluation guidelines, it might need to be elevated to the level of the actual law or subsidiary legislation to gain more statutory backing.

Currently, the government is reviewing the Local Content Act with the goal of expanding the areas designated for Guyanese participation. The Act currently reserves 40 areas within the sector for Guyanese involvement, and the government's Mid-Year Report indicated that 20 additional areas are slated to be added.

Under the Act, Guyanese are required to provide services for 90% of office space rentals, 90% of accommodation services (including rental of houses and apartments), 25% of onshore pipe welding, 75% of non-hazardous waste management, 90% of janitorial and laundry services, 90% of catering, 75% of food supply, 100% of immigration services, and 100% of local insurance services, among other requirements.

Separately, a representative from ExxonMobil Guyana Limited (EMGL) stated that 7,000 Guyanese individuals are currently employed in the sector, representing 70% of the workforce. The representative also noted that over 2,000 Guyanese suppliers have participated in industry activities, and Exxon stated it has spent US$3.9B with Guyanese suppliers since beginning operations locally. For 2025 alone, the company reported spending close to US$700 million across 150 contracts with Guyanese businesses, with spending in the first half of 2026 estimated at approximately US$317 million.

The Supplier Forum, which took place the previous day, was themed “From capability to growth: building Guyanese businesses for long-term success.” The one-day event gathered prime contractors, local businesses, and government officials to help Guyanese businesses understand sector procurement processes, gain insight into future opportunities, and explore necessary capabilities and strategies for sustained success.